Marketing Strategy for a New Cholesterol-Lowering Drug

Client:  a large global pharmaceutical company (Sandoz, now Novartis)

Authors/Consultants: Homer J

This was the first of a series of models with Sandoz dealing with the positioning of new products in various therapeutic application markets.  The cholesterol-lowering drug was a “me-too” drug entering a very competitive market.  The purpose of the model was to investigate a variety of positioning alternatives, mainly focused on pricing and marketing, to determine whether the new drug could become a winner and what it would take.  The model was capable of explaining historical prescriptions and marketing data of competitor firms, and revealed the importance of product switching, pre-marketing response, and patient compliance.

Publication: Homer J.  Why We Iterate: Scientific Modeling in Theory and PracticeSystem Dynamics Review, 12(1): 1-19, 1996.